Traders on the New York Stock Exchange were busy as futures for the S&P 500 saw a modest rise of 0.3% ahead of the Federal Reserve’s interest rate decision and eagerly awaited earnings reports from major technology firms. Nasdaq 100 futures surged by 0.8%, indicating a robust sentiment in tech stocks, while the Dow Jones Industrial Average saw a slight decline of 27 points, or 0.1%.
Shares of ASML, a leader in semiconductor equipment, soared more than 5% following the company’s report of record orders and optimistic projections for 2026, largely driven by the increasing demand in the artificial intelligence sector. Similarly, Seagate Technology, specializing in data storage infrastructure, experienced a 9% jump in its stock prices after reporting second-quarter earnings and revenue that surpassed expectations. CEO Dave Mosley attributed this growth to a heightened demand for AI data storage solutions.
In a significant move for the tech industry, China granted approval to major companies including ByteDance, Alibaba, and Tencent to purchase Nvidia’s H200 AI chips, according to a Reuters report. This development contributed to a lift in Nvidia shares, which rose approximately 2%, while fellow semiconductor companies such as Advanced Micro Devices and Taiwan Semiconductor Manufacturing also benefited from this trend.
On the currency front, the U.S. dollar faced slight downward pressure, continuing its recent decline, which marked its worst performance since April of the previous year. Currently, the dollar has depreciated over 10% in the past year. This decline follows comments from President Donald Trump, who refrained from stating that the dollar’s depreciation was excessive, maintaining that the currency is “doing great.”
Later in the day, the Federal Reserve is anticipated to maintain its benchmark interest rate steady in the range of 3.5% to 3.75%. However, traders are eager for insights regarding potential long-term adjustments to monetary policy. The CME FedWatch Tool reflects that futures trading suggests two quarter-point rate cuts could occur by the end of 2026.
Christian Hantel, a portfolio manager at Vontobel Asset Management, remarked on the current U.S. economic landscape, stating it remains positive with ongoing growth and a stabilizing labor market, despite a slight softening. He mentioned that while inflation persists above the Fed’s target, immediate rate cuts seem unwarranted. Investors should focus on the upcoming March and June Federal Open Market Committee (FOMC) meetings as opportunities for potential policy shifts, which could be delayed until the latter half of 2026 if conditions permit.
All eyes are now set on Federal Reserve Chair Jerome Powell, who is expected to provide signals regarding the central bank’s stance on future easing. For the time being, the Fed appears committed to a cautious, meeting-by-meeting approach.
As the market anticipates earnings from key tech giants, major firms like Microsoft, Meta Platforms, and Tesla are expected to release their quarterly financial results later in the day, while Apple will follow suit on Thursday. The S&P 500 recently closed at an all-time high, up 0.4%, while the Nasdaq Composite saw a gain of 0.9%. In contrast, the 30-stock Dow dropped more than 400 points, primarily impacted by a nearly 20% decline in UnitedHealth.
